Italian-Thai Development To Sell Stake In ITD Cementation To Adani Group Arm For Rs 3,204 Crore

Italian Thai Development is set to sell 46.64% stake in ITD Cementation to Renew Exim DMCC. The promoter of the firm will sell 8.01 crore shares at the rate of Rs 400 apiece for the aggregate amount of Rs 3,204 crore

An additional offer was made to buy up to 4.46 crore shares of the ITD Cementation, which is 26% of its voting shares. The offer price was set at Rs 571.68 per share, totaling up to around Rs 2,553 crore in case all shareholders decided to sell.

This offer is subject to the necessary approvals from authorities and will follow the guidelines set by the Securities and Exchange Board of India.

This open offer is a regulatory requirement triggered by the acquisition of more than 25% of the company's voting shares, ensuring fairness by allowing existing shareholders the opportunity to sell their stakes under similar terms.

If the open offer is fully accepted, Renew Exim DMCC’s total ownership in ITD Cementation could increase to 72.64%.

ITD Cementation India's shares had hit the 20% upper circuit on 20th Sept. after news of the Adani Group's plans at the top contender for acquiring stake in the company first broke. The share price had risen to its highest level since Aug. 29.

Share price of ITD Cementation India closed 1.64% lower at Rs 533.65 apiece on the NSE, compared to a 0.9% downturn in the benchmark Nifty 50.

The stock has risen 86.82% on a year-to-date basis and 171.37% over the past 12 months.

The stock had an intraday low of 7.48% on Friday at Rs 507.00 per share.

Out of the four analysts tracking the company, two have a 'buy' rating on the stock, one suggest a 'hold' and one recommends a 'sell', according to Bloomberg data.

The average of 12-month analysts' consensus price targets implies a potential downside of 0.4%.